Bank Nifty - The Strangle at Play
Bank Nifty is one of the most underperforming sectorial indices against Nifty since February 2021.
The recent momentum in Nifty is lead by Reliance while the correction in HDFC Bank (weightage of ~28%) kept Bank Nifty under pressure.
Technically, index is trending between the canals of gaps with resistance placed at 37,400 and support at 35,800.
The rise yesterday resisted at the key psychological of 37,000 and 100HEMA (Hourly Exponential Moving Average) which was placed at 36,914.
Additionally, the less tracked 22 degrees rising trendline has support placed at 36,200 around the gap area.
As an option trader, the best strategy to play the setup is the short strangle till the index continues to trade in the mentioned range.
Traders must understand the risk involved in shorting the options as the risk is unlimited and it is advised to trade with strict stoploss.
#KeepItSimple
Bank Nifty is one of the most underperforming sectorial indices against Nifty since February 2021.
The recent momentum in Nifty is lead by Reliance while the correction in HDFC Bank (weightage of ~28%) kept Bank Nifty under pressure.
Technically, index is trending between the canals of gaps with resistance placed at 37,400 and support at 35,800.
The rise yesterday resisted at the key psychological of 37,000 and 100HEMA (Hourly Exponential Moving Average) which was placed at 36,914.
Additionally, the less tracked 22 degrees rising trendline has support placed at 36,200 around the gap area.
As an option trader, the best strategy to play the setup is the short strangle till the index continues to trade in the mentioned range.
Traders must understand the risk involved in shorting the options as the risk is unlimited and it is advised to trade with strict stoploss.
#KeepItSimple
👍38
Nifty - Chart discussed yesterday in Telegram Live
Levels to watch for next week - 16750-17550 zone will be the trend decider.
Levels to watch for next week - 16750-17550 zone will be the trend decider.
❤18👍18
Let me know what you thought about my LIVE Training session on Telegram.
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👍35❤10
IT Index - Resumption in Bearish Momentum
IT index has corrected over 10% this month lead by Infosys (-18%), TechM (-15%) and Wipro (-11%) so far.
I did a video last week indicating GoodBye Bulls in IT Sector and index is now resuming the bearish momentum in todays session.
Watch video here https://youtu.be/AcwDAmbuFq4
The distribution phase of Wyckoff theory is in place on chart of IT sector signaling the bears are having an upper hand of the trend.
The gap-down opening today resumes the bearish momentum on IT stocks and these stocks are the shorting stocks as the large-caps are leading the way lower.
I believe, IT stocks are in short on rise opportunity phase as most of them are in F&O segment.
Incase, we close below 31,500 on IT index, the momentum could accelerate in the short term.
#KeepItSimple
IT index has corrected over 10% this month lead by Infosys (-18%), TechM (-15%) and Wipro (-11%) so far.
I did a video last week indicating GoodBye Bulls in IT Sector and index is now resuming the bearish momentum in todays session.
Watch video here https://youtu.be/AcwDAmbuFq4
The distribution phase of Wyckoff theory is in place on chart of IT sector signaling the bears are having an upper hand of the trend.
The gap-down opening today resumes the bearish momentum on IT stocks and these stocks are the shorting stocks as the large-caps are leading the way lower.
I believe, IT stocks are in short on rise opportunity phase as most of them are in F&O segment.
Incase, we close below 31,500 on IT index, the momentum could accelerate in the short term.
#KeepItSimple
👍26❤1
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Dear Valued Member:
Just a short while ago, we took a major step in our post ransomware recovery process.
Here goes...
We have gone LIVE with the Portfolio Tracker. With all your data intact.
Yes, we have restored the portfolio tracker service for you, dear reader.
This was made possible with support from our partners in the US.
I now invite you to visit the Portfolio Tracker and access all your reports as you normally would.
https://www.EquityMaster.com/portfolio
If you have any questions and comments related to the Portfolio Tracker, as always, just drop us a line at info@equitymaster.com and our team will look into it right away.
Before I sign off, I want to address the point about integrity of our data going forward.
You see, while we had what we believed to be the best-in-class systems to protect our systems and data, we still suffered from the targeted ransomware attack.
Clearly, we need to do a lot more.
You have our commitment that we are doing everything that we can do to make our systems safe and secure.
Finally, I know that the fear of ‘loss’ of your portfolio tracker data caused you a lot of anguish.
On behalf of the entire team at Equitymaster, I apologise for the same.
I hope, as in the past, you will continue to visit Equitymaster for honest and credible opinions on investing...and, for tracking your stocks and mutual fund portfolios.
Warm regards
Rahul Goel
CEO, Equitymaster
👍6
Banking Index - The Candlestick Reversal
Banking stocks are outperforming against the benchmark index Nifty in last couple of days. Though Nifty ended on negative note yesterday, Bank Nifty ended in green on the back of private banks.
The Private Bank Index and PSU Bank Index are forming the bullish reversal candlestick pattern.
On Private Bank Index, the bullish meeting lines candlestick pattern is visible on daily chart. The pattern formed at the 50% Fibonacci retracement of the previous rally from 16,300 to 19,600. The momentum indicator Stochastic is turning bullish in an oversold territory supporting the reversal structure.
On PSU Bank Index, the probable Morning Star bullish reversal candlestick pattern is visible on charts. The bullish reversal candle is forming at the 100DEMA. Stochastic is in oversold territory and the slope may turn northwards signaling the bullish tone.
The bullish reversal on Private as well as PSU Bank index indicates the bullish scenario for the May series.
#KeepItSimple
Banking stocks are outperforming against the benchmark index Nifty in last couple of days. Though Nifty ended on negative note yesterday, Bank Nifty ended in green on the back of private banks.
The Private Bank Index and PSU Bank Index are forming the bullish reversal candlestick pattern.
On Private Bank Index, the bullish meeting lines candlestick pattern is visible on daily chart. The pattern formed at the 50% Fibonacci retracement of the previous rally from 16,300 to 19,600. The momentum indicator Stochastic is turning bullish in an oversold territory supporting the reversal structure.
On PSU Bank Index, the probable Morning Star bullish reversal candlestick pattern is visible on charts. The bullish reversal candle is forming at the 100DEMA. Stochastic is in oversold territory and the slope may turn northwards signaling the bullish tone.
The bullish reversal on Private as well as PSU Bank index indicates the bullish scenario for the May series.
#KeepItSimple
👍16
Market swings in a range; Reliance leads the day for Nifty to settle at 17,200 gaining 1.46%.
As I highlighted in the Telegram Live, index is expected to trade in the range for the expiry; it hovers in the range of 16,800-17,500. https://t.me/FastProfitsReport/521?single
Nifty reversed from 200DEMA and forms the higher low yesterday at 16,888. The gap area is playing key support zone.
An island reversal and Morning-star bullish reversal candlestick on daily chart of Nifty indicates the bulls are having an upper hand.
US markets reversed last night indicating the bullish momentum on Wallstreet. If the bullish momentum continues today, Nifty may head towards 17,400-17,450 zone ahead of monthly expiry.
Brijesh Bhatia
Research Analyst, Fast Profit Report
As I highlighted in the Telegram Live, index is expected to trade in the range for the expiry; it hovers in the range of 16,800-17,500. https://t.me/FastProfitsReport/521?single
Nifty reversed from 200DEMA and forms the higher low yesterday at 16,888. The gap area is playing key support zone.
An island reversal and Morning-star bullish reversal candlestick on daily chart of Nifty indicates the bulls are having an upper hand.
US markets reversed last night indicating the bullish momentum on Wallstreet. If the bullish momentum continues today, Nifty may head towards 17,400-17,450 zone ahead of monthly expiry.
Brijesh Bhatia
Research Analyst, Fast Profit Report
👍8❤6
Indian markets opens with the gap-down and trades in the range; Nifty settles at 17,038 losing 0.94%.
The morning-star bullish reversal candlestick pattern on Nifty at 16,888 indicates the bulls are having an upper hand with higher-low structure.
The bullish harmonic pattern on short-term chart of Nifty at 16,970 targets 17,184 for the recent momentum.
An addition in 17000PE signals the support for bulls while the writing from 17100CE to 17500CE indicates the rangebound expiry.
The Best Sector to buy in May 2022, follow our YouTube channel as I release the video today. https://www.youtube.com/user/eqtmonline/videos
Brijesh Bhatia
Research Analyst, Fast Profit Report
The morning-star bullish reversal candlestick pattern on Nifty at 16,888 indicates the bulls are having an upper hand with higher-low structure.
The bullish harmonic pattern on short-term chart of Nifty at 16,970 targets 17,184 for the recent momentum.
An addition in 17000PE signals the support for bulls while the writing from 17100CE to 17500CE indicates the rangebound expiry.
The Best Sector to buy in May 2022, follow our YouTube channel as I release the video today. https://www.youtube.com/user/eqtmonline/videos
Brijesh Bhatia
Research Analyst, Fast Profit Report
👍16
Bank Nifty - Bulls are ready for 38,000+
Bank Nifty has been underperforming Nifty for over the year now. The trend is likely to reverse in the short-term.
The multiple bullish harmonic pattern - Bullish White Swan (black) and Bullish Bat (pink). The harmonic patterns are reversal patterns calculated using various Fibonacci retracements and projections.
The bullish White Swan and Bat completed at ~35,500 levels and the sustainable move around 36,000 is confirming the structure.
Additionally, the patterns have completed at long-term 200DEMA and the positive crossover on momentum indicator, Stochastic is confirming the reversal.
Bank Nifty bulls are getting ready to take index towards 38,000-38,800 levels in the May series. The harmonic pattern will negate on the close below 35,950.
I also recorded the video as Banking Stocks are the Best trades of the Month highlighting the Private Bank Index as well as PSU Bank Index. Watch here https://www.youtube.com/watch?v=DYd4H_ua0fw
(CMP-36,035)
#KeepItSimple
Bank Nifty has been underperforming Nifty for over the year now. The trend is likely to reverse in the short-term.
The multiple bullish harmonic pattern - Bullish White Swan (black) and Bullish Bat (pink). The harmonic patterns are reversal patterns calculated using various Fibonacci retracements and projections.
The bullish White Swan and Bat completed at ~35,500 levels and the sustainable move around 36,000 is confirming the structure.
Additionally, the patterns have completed at long-term 200DEMA and the positive crossover on momentum indicator, Stochastic is confirming the reversal.
Bank Nifty bulls are getting ready to take index towards 38,000-38,800 levels in the May series. The harmonic pattern will negate on the close below 35,950.
I also recorded the video as Banking Stocks are the Best trades of the Month highlighting the Private Bank Index as well as PSU Bank Index. Watch here https://www.youtube.com/watch?v=DYd4H_ua0fw
(CMP-36,035)
#KeepItSimple
👍32
Nifty and Bank Nifty view shared in Live Telegram session last Friday -
Played exactly the way charts were highlighting - The Short Strangle Strategy
Do you wish to attend more Live session?
Played exactly the way charts were highlighting - The Short Strangle Strategy
Do you wish to attend more Live session?
Anonymous Poll
89%
Yes
4%
No
7%
May be
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